THE Federal Government has broken up the controversial Petroleum Industry Bill into different versions and is proposing splitting the Nigerian National Petroleum Corporation, NNPC, into two companies – the Nigeria Petroleum Assets Management Company (NPAM) and a National Oil Company (NOC) that would be run on commercial lines and partly privatised.
Under the draft legislation, the report stated that the NOC will be an “integrated oil and gas company operating as a fully commercial entity and will run like a private company.”
NPAM, on the other hand, is expected to manage assets where the government is not obligated to provide any upfront funding. “These include oil licences run under production-sharing agreements in which independent oil companies cover operating costs and pay tax and royalties on output,” the report noted.
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